Friday, January 7, 2011

1/7/11 - EOD Update [10:00 PM Edit]

[10:00 PM Edit]
INDU

Can't forget about Mr INDU. This count looks pretty good. It is much cleaner than SPX

There are three options on the chart:

1. (iv) completed today
2. Only wave a of (iv) completed today
3. A very bullish nested (i)-(ii) , i - ii up **NOTE** This count may also apply to SPX


[5:20 PM Edit]


One more channel providing guidance for this uptrend. I didn't update the label at top but since the last update, the top channel is now approaching 1297.

[4:57 PM Edit]
BEAR COUNT

I would be remiss not to show a potential bear count. 1276.75 is the key marker to watch for that would invalidate this count on SPX.

As I'm typing this I realize the chart represents the INDU. All the concepts on the chart apply to SPX as well. I don't want to recreate the SPX chart so just keep the key marker level in mind.

For INDU the level would be 11726.79, the end of wave 2 blue.

[3:46 PM Edit]



Combo Corrective Tri Option

Scw from the chatroom posted a RUT count that made me realize the SPX may still be forming this option as posted yesterday but just a larger more proportionate structure.

As usual, we'll see.

EOD Update
PREVIOUS OPTION1 - INVALIDATED

I can finally put this count to rest since there is a 4-1 overlap at the top here. Yesterday's alternate 1 count was moved into this position and I think it is a good one.

OPTION 1

The market continues to stair step higher and once again respected the trendline since December.

This count shows a wave 4 corrective combination. Yesterday I took for granted and only showed the combo with the tri but should have also showed the combo that ends with a zigzag like the figure below.



Ibelieve that is what we completed today for wave 4. Notice on the chart I show an alternate option that may call for one more little low.

Wave 3 extension

This option has (iii) in progress with iv of (iii) in today or a little more to go like option 1's scenario.


Does this pattern continue or finally come to an end?
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